Shopify's stock price surges 22% following earnings that exceeded expectations and an optimistic outlook.

• For the second quarter, Shopify surpassed expectations and provided an optimistic outlook for the present quarter.
• Despite a mixed consumer spend environment, the company reported strong demand for its services, which include online merchant software.
• In recent weeks, consumers have been cautious, as stated in earnings reports by e-commerce peers Amazon, Etsy, and Wayfair.

On Wednesday, shares of the Canadian e-commerce company rose as much as 22% in early trading after the company reported strong demand for the second quarter, despite a "mixed consumer spend environment."

Here's how the company did:

• Earnings: 26 cents per share vs. 20 cents per share expected by LSEG
• Revenue: $2.05 billion vs. $2.01 billion expected by LSEG

During the quarter, the company's gross merchandise volume increased by 22% to $67.2 billion, surpassing the consensus estimates of $65.8 billion, as reported by FactSet.

Shopify offers software and services for online merchants, including advertising and payment processing tools. Despite the uncertain economic climate, Jeff Hoffmeister, Shopify's CFO, stated that the company continued to gain market share during the quarter.

E-commerce companies such as , and reported that consumers are still being cautious with their spending and are opting for cheaper brands while searching for deals.

During a conference call with investors, Shopify executives stated that their merchants have successfully navigated the consumer slowdown, which they attributed to the platform's "diverse range" of businesses.

"Shopify President Harley Finkelstein stated on the call that he believes their merchants are outperforming others due to their presence in various verticals and geographies."

According to Shopify, revenue growth for the third quarter is predicted to be in the low-to-mid twenties percentage range year over year. FactSet's surveyed analysts forecast sales growth of 21% year over year to $2.07 billion.

Etsy CEO Josh Silverman: The current climate is challenging for consumers.